Monday, February 18, 2008

Mortgage Interest Rates 2008 Forecast and last year summary

Mortgage Interest Rates 2008 Forecast and last year summary


Mortgage rates increased by about 100 basis points between the start and the end of 2007. The sub-prime mortgage loan crisis in the U.S. has continued to rock financial markets resulting in liquidity issues which have increased the costs of funding mortgages.

Equity and financial markets have experienced additional upheaval as many analysts and investors speculate on the possibility of the U.S. slipping into a recession. The ensuing flight to quality in financial markets has resulted in lower yields on government bonds, but has not had a large impact on posted mortgage rates.

The potential drag on Canadian GDP growth due to a potential U.S. economic slowdown, coupled with the tightening on Canadian credit conditions, and the high value of the Canadian dollar will cause minor fluctuations in mortgage rates through 2008.

Mortgage rates are expected to remain within 25-75 basis points of their current levels in 2008 and then stabilize throughout 2009.

The one year posted mortgage rate is forecast to be in the 6.75-7.50 per cent range, while three and five year posted mortgage rates are forecast to be in the 7.00-7.75 per cent range in 2008.
Source: CMHC 2008 Canadian Housing Observer First Quarter


Friendly Ponds
Building a network is not just about business. New acquaintances can often become friends for life, even though you initially connected because of a business association. The best way to build a network of depth, breadth and reach comes from Dale Carnegie: "You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you." So, how many new friends did you make this year?
Source: Darcy Rezac's Tip of the Week at workthepond.com

Did you know that in 2005, 1.1 million households in Canada owned second homes, vacation homes or cottages? This represents a growth of approximately 200,000 households since 1999. Baby boomers were responsible for much of the increase; households with maintainers aged 45 to 64 accounted for almost three quarters of the total increase in households owning secondary homes. Source: 2008 Canadian Housing Observer

Knowing your Markets
One of the more difficult challenges in growing your business is knowing where your next sale is coming from. That is why it is very important to have an in-depth understanding of the resale market in which you work. The following summary table provides you with a quick overview of resale activity in Canada's largest markets

(you can also visit http://www.cmhc.ca/en/inpr/homain/index.cfm for more information):


MLS® Statistics for Select Canadian Markets

Sales

Average Price

2006

2007

up/dwn

2006

2007

up/dwn

Calgary

33,027

32,176

-2.6%

$348,004

$413,139

18.7%

Edmonton

21,984

20,427

-7.1%

$251,169

$337,428

34.3%

Vancouver

36,479

38,978

6.9%

$509,802

$568,588

11.5%

Ottawa-Crltn

14,003

14,739

5.3%

$256,447

$272,395

6.2%

Toronto

84,842

95,164

12.2%

$350,616

$376,873

7.5%

Montréal

50,106

56,151

12.1%

$216,100

$230,147

6.5%

Halifax

6,462

7,261

12.4%

$202,565

$215,055

6.2%

Source: Canadian Real Estate Association (CREA), CMHC



Current Mortgage Interest Rates

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Homes for Sale

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